TaxTMI 
TaxTMI 
GST on Residential Project
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....ST on Residential Project<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 23-12-2022 Last Reply Date:- 27-12-2022 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>As per the Notification, the GST Rate for Construction of affordable residential apartments by a promoter in a Residential Real Estate Project is 1.5% (0.75 + 0.75). However, under commentaries in the Taxmann website a....
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....nd many other places, it is mentioned as 1% (0.5 + 0.5). Please guide. Reply By Amit Agrawal: The Reply: Both things are correct, if taken from angle of generally followed trade practices of expression. The actual tax-rate of 1.5% becomes effective rate of 1% of total consideration once you reduce 'deemed value of one third of the total consideration for such supply' towards the 'v....
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....alue of transfer of land or undivided share of land' so as to arrive at 'value of construction services for payment of gst'. In other words, 2/3 (1.5%) = 1%. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Kaustubh Karandikar: The Reply: Thanks Amit Sir for yur quick and accurate guidance. Reply By Padmanathan K....
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....ollengode: The Reply: In my humble opinion, the correct rate of tax is 1.5% (0.75% + 0.75%). However, since 1/3 abatement is given to the land value, the effective rate will be 1%. For disclosure in returns, the value after abatement of land must be under declared under 1.5% rate Reply By Shilpi Jain: The Reply: Agreed. The rate of tax is actually 1.5% and the deduction of 1/3rd given is only ....
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....in the valuation. This is the manner in which the disclosure should also be made in the returns. Many times it is seen that the taxpayers disclose rate of tax as 1% and 5% instead of 1.5% and 7.5% for affordable and other than affordable residential projects Reply By Amit Agrawal: The Reply: I agree with Ms. Shilpi Mam that for disclosure under GST records / submissions, tax-invoices etc., tax-....
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....payer should disclose tax-rate @ 1.5% or 7.5% (& not 1% or 5%), as the case may be and taxable value as ''2/3 of 'total consideration which includes land'' (& not 100% of 'total consideration which includes land). These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Amit Agrawal: The Reply: Though my post at....
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.... serial number 1 states the same thing, it is better to give further clarity for better understanding for everyone. Reply By Kaustubh Karandikar: The Reply: thanks amit ji and shilpi ji for your support as always<br> Discussion Forum - Knowledge Sharing ....